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Coca-Cola European Partners PLC (NYSE:CCE)
Beneish M-Score
-1.72 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Coca-Cola European Partners PLC has a M-score of -1.72 signals that the company is a manipulator.

CCE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.72   Max: -0.05
Current: -1.72

-4.72
-0.05

During the past 13 years, the highest Beneish M-Score of Coca-Cola European Partners PLC was -0.05. The lowest was -4.72. And the median was -2.59.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Coca-Cola European Partners PLC for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.6054+0.528 * 0.9734+0.404 * 1.3241+0.892 * 0.9459+0.115 * 2.2084
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1365+4.679 * -0.0176-0.327 * 0.6982
=-1.72

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $2,488 Mil.
Revenue was 2478.67865169 + 1487.72383073 + 1652.85076253 + 1860.34231201 = $7,480 Mil.
Gross Profit was 905.421348315 + 549.192650334 + 608.354030501 + 711.667789001 = $2,775 Mil.
Total Current Assets was $4,335 Mil.
Total Assets was $21,051 Mil.
Property, Plant and Equipment(Net PPE) was $4,412 Mil.
Depreciation, Depletion and Amortization(DDA) was $289 Mil.
Selling, General & Admin. Expense(SGA) was $1,981 Mil.
Total Current Liabilities was $3,898 Mil.
Long-Term Debt was $7,128 Mil.
Net Income was 170.647191011 + 64.7260579065 + 157.78540305 + 171.535353535 = $565 Mil.
Non Operating Income was -2.51573033708 + -1.96102449889 + -1.01198257081 + -4.08417508418 = $-10 Mil.
Cash Flow from Operations was 258.065168539 + 120.625835189 + 155.666666667 + 410.542087542 = $945 Mil.
Accounts Receivable was $1,638 Mil.
Revenue was 1929.25476992 + 1588.65367965 + 2219.90628853 + 2169.25128866 = $7,907 Mil.
Gross Profit was 705.459034792 + 553.253246753 + 775.758323058 + 820.578608247 = $2,855 Mil.
Total Current Assets was $2,857 Mil.
Total Assets was $8,712 Mil.
Property, Plant and Equipment(Net PPE) was $2,009 Mil.
Depreciation, Depletion and Amortization(DDA) was $316 Mil.
Selling, General & Admin. Expense(SGA) was $1,843 Mil.
Total Current Liabilities was $2,821 Mil.
Long-Term Debt was $3,714 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2487.64044944 / 7479.59555696) / (1638.0650954 / 7907.06602677)
=0.33259024 / 0.20716472
=1.6054

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2855.04921285 / 7907.06602677) / (2774.63581815 / 7479.59555696)
=0.36107568 / 0.37096068
=0.9734

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4334.83146067 + 4412.35955056) / 21050.5617978) / (1 - (2856.85858586 + 2009.30751964) / 8711.66666667)
=0.58446757 / 0.44141962
=1.3241

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7479.59555696 / 7907.06602677
=0.9459

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(315.543679813 / (315.543679813 + 2009.30751964)) / (288.936575879 / (288.936575879 + 4412.35955056))
=0.1357264 / 0.06145892
=2.2084

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1981.35357545 / 7479.59555696) / (1843.03920116 / 7907.06602677)
=0.26490116 / 0.23308762
=1.1365

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((7128.08988764 + 3897.75280899) / 21050.5617978) / ((3714.41638608 + 2820.83501684) / 8711.66666667)
=0.52377902 / 0.75017234
=0.6982

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(564.694005503 - -9.57291249095 - 944.899757937) / 21050.5617978
=-0.0176

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Coca-Cola European Partners PLC has a M-score of -1.72 signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Coca-Cola European Partners PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.09721.00390.99952.23270.83770.84581.06091.03860.99311.023
GMI 1.02151.03561.033410.99871.00991.01681.03210.96880.9814
AQI 0.90651.00270.55341.53261.030.95251.0131.03860.96431.0253
SGI 1.05591.05451.01280.31321.00711.25940.95131.01971.02720.8336
DEPI 1.0460.96310.94661.11221.2180.84460.9981.08930.90271.0267
SGAI 0.98720.96370.99060.79641.01380.96921.01470.96980.99681.0279
LVGI 1.09610.94341.48960.38521.55371.12611.06861.09211.11631.0528
TATA -0.1174-0.0392-0.3847-0.0321-0.0233-0.0121-0.0287-0.0168-0.0365-0.0449
M-score -2.94-2.57-4.60-1.64-2.88-2.51-2.61-2.49-2.71-2.84

Coca-Cola European Partners PLC Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.08151.21741.05520.9590.82280.80150.82041.04231.07741.6054
GMI 1.02310.99940.97870.96820.96980.97850.98950.98120.97020.9734
AQI 0.99340.96220.99950.96430.95650.98231.03091.02531.02191.3241
SGI 1.0271.04561.03671.06371.02620.96070.92110.81820.83480.9459
DEPI 1.12451.09530.94090.8330.77870.8280.97511.06881.17332.2084
SGAI 0.91750.93810.94730.99581.02920.99971.02791.0281.06151.1365
LVGI 1.0831.09211.06951.11631.14081.10241.07871.05281.00610.6982
TATA -0.0154-0.015-0.0163-0.0387-0.0546-0.0638-0.0774-0.0466-0.0438-0.0176
M-score -2.44-2.33-2.50-2.73-2.99-3.07-3.10-2.84-2.76-1.72
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